India Online Grocery Market Report 2025-2034 | Size, Share & Forecast

According to a comprehensive report by Expert Market Research, the India online grocery market is set for remarkable expansion during the forecast period of 2025-2034. The report provides a deep insight into the market, segmenting it by product categories, average transaction value, purchasing platform, payment methods, and key cities.

The report further evaluates the market through detailed price and demand indicators, assesses the latest trends, and includes analysis based on SWOT and Porter's Five Forces frameworks.

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Market Outlook (2025-2034)

The India online grocery market was valued at USD 12.00 billion in 2024. It is expected to grow at a robust CAGR of 24.36% from 2025 to 2034, ultimately reaching an estimated value of USD 106.17 billion by the end of the forecast period.

The surge in smartphone penetration, affordable internet, and increasing digital literacy are key drivers fueling the market's growth. Government initiatives promoting a digital economy and rising consumer comfort with online transactions are further propelling market expansion.

Urban dwellers, especially in Tier-I cities, are leading this growth trend, driven by busy lifestyles, higher disposable incomes, and a preference for convenient shopping options. Increasing interest in international brands, organic food items, and health-focused products is also encouraging higher online grocery spending.

The millennial population, coupled with the rising number of working women, is boosting demand for flexible, quick, and reliable online grocery services. These shifts in consumer behavior are fostering sustained growth in the sector.

India Online Grocery Market Definition and Major Segments

An online grocery refers to a digital platform-either an e-commerce website or mobile application-that enables consumers to purchase grocery items and household essentials. These platforms may include dedicated online-only services or hybrid models of brick-and-mortar stores offering delivery options.

Based on category, the market is segmented into:

Grocery and Staples
Fruits and Vegetables
Others

By average spend per transaction (in INR), the market is divided into:

Below 1000
1000 to 1500
Above 1500

By food platform:

Website
Mobile Application

Based on payment method:

Online
Cash on Delivery

On the basis of city, the market is segmented into:

North Region
East and Central Region
West Region
South Region

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India Online Grocery Market Trends

The growing influx of private equity and venture capital in the Indian e-commerce and retail sectors is significantly enhancing the online grocery ecosystem. E-retailers are attracting customers with perks like low delivery charges, lightning-fast delivery, cashback rewards, and easy return options.

With health and safety becoming a priority, initiatives such as contactless delivery and digital payments have further encouraged customers to shop groceries online. Platforms like BigBasket, Grofers (now Blinkit), Amazon, and Flipkart Supermart have witnessed sharp increases in demand.

The work-from-home culture has also played a pivotal role in boosting online grocery shopping habits, especially in urban centers like Mumbai and Pune. These cities have seen a sharp uptick in online grocery orders due to time-saving and convenience factors.

As India's urban population continues to grow, and with rising tech-savviness among consumers, the sector is expected to unlock more growth avenues over the next decade.

Key Market Players

Some of the leading companies operating in the India online grocery market include:

Innovative Retail Concepts Pvt Ltd
Blink Commerce Private Limited
Amazon.com, Inc.
Nature's Basket
Spencer's Retail Limited
Flipkart Private Limited
Paytm
Avenue Supermarts Limited

These players are actively investing in capacity expansion, logistics enhancement, mergers and acquisitions, and innovative service offerings to solidify their presence and meet growing consumer demand across the country.

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This release was published on openPR.